Al Akaria sells 17 land lots in Riyadh for SAR 145.15B, sees capital gain of SAR 125.74M

Logo of Saudi Real Estate Co. (Al Akaria)

Saudi Real Estate Co. (Al Akaria) announced the sale of 17 plots of land in Riyadh through an electronic public auction held on Dec. 26, for a total value of SAR 145.15 million (excluding real estate transaction tax and brokerage fees).

In a statement to Tadawul, the company said that the total area stands at 43,290 square meters within Al Dhahia Project, which was developed by the company in the Al Rimal district of Riyadh.

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The buyers are Almutamadah Gate for Development and Real Estate Investment, Ali bin Abdulrahman bin Ali Alsanan, Haifa Misfer Sulaiman Almisfer and Ahmed Abdullah Hamad Alhunaitah, the statement added.

The asset book value is SAR 19.41 million and proceeds will be used to finance the company’s future projects, the statement added.

The deal is expected to have a positive impact on the company's financial results upon the completion of the sale to the buyers.

No related parties are participating in this transaction, the company further noted.

The divestment of non-core lands is a strategic step aligned with the company's strategy approved in 2023. The strategy focuses on maximizing shareholder returns, diversifying income sources, and achieving a balanced and healthy capital structure.

The divestment serves as a key enabler to achieve these strategic objectives by providing the necessary liquidity to launch new developmental projects that contribute to meeting the strategic targets, Al Akaria stated.

According to data compiled by Argaam, the capital gain resulting from this transaction is SAR 125.74 million.